100% participation of Cofinimmo in North Galaxy SA (BE)

Cofinimmo has announced, according the agreement concluded on 08.12.2003 with Compagnie De Promotion SA, Atenor Group and Dexia Bank Belgium, the exercise of the option on the balance of the North Galaxy SA shares: The North Galaxy building, whose investment value is near € 390 million, represents the asset of North Galaxy SA.

With its 105,000 m² of office space, this building is very attractively located in the Brussels’ North Area (Central Business District) in the immediate proximity of the North Station. Until today Cofinimmo owned 33% of the capital of North Galaxy SA. The remaining shares were jointly owned by Compagnie De Promotion SA (47%), Atenor Group (14%) and Dexia Bank Belgium (6%). The entire building is rented for 18 years ending as per 30.11.2022 to the Régie des Bâtiments (Belgian Federal Government) who will accommodate the Federal Public Service of the Ministry of Finance there.

The option on the balance of the North Galaxy SA shares was exercised following the acceptance of the building by the tenant with effect as per 31.03.2005. The exercise of this option initiates the closing procedure of the transaction which will lead to the determination of the acquisition price and will be finalized within the following 15 days. At the issue of this period Cofinimmo and its subsidiaries will own 100% of the shares of North Galaxy SA.

A bridging loan will allow Cofinimmo to lend to North Galaxy SA the amount required to refinance the construction loan (€ 227 million) and the advances made by the vendor-shareholders (€ 40 million).
Cofinimmo will carry out the merger by absorption with North Galaxy SA. Cofinimmo also sets up a new company, Galaxy Properties, to which it will grant a right in a 27-year long lease on the North Galaxy building.

In addition, it has already been agreed with a financial institution that the latter will offer to buy from Galaxy Properties the future rental income under a lease contract signed with the Régie des Bâtiments. It is planned that this assignment of rents should be effected against a price to be paid immediately which would enable Galaxy Properties to pay a first long-lease receivable to Cofinimmo. This first receivable will be deployed by Cofinimmo to repay in full the bridging loan made to Cofinimmo to refinance construction of the building and the advances from shareholders.

Source: Cofinimmo

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